Hyderabad: More & more opting for co-working spaces

Hyderabad: Small start-ups as well as large IT players are finding office space rentals attractive as these co-working spaces are providing several benefits at affordable prices. Hyderabad observed an increase of 53 per cent in office space leasing at 9.5 million sq ft in 2019.

Regus, We-work, Rented Desk are a few major flexible working space providers in Hyderabad located in several commercials areas like Financial District, Gachibowli, Hi-Tec City and Madhapur and providing office space for lease at Rs 70 to Rs 90 per square feet.

A survey was carried out by Savills India in six cities across the country includes National Capital Region (NCR), Mumbai, Bengaluru, Pune, Hyderabad and Chennai and reports the predictions that, India might hit the gross office leasing at 61-62 million sq ft in 2020 across six cities.

"The commercial segment, especially, the office space market is going from strength to strength, beating its own record of 47.3 million square feet in 2018, to set a new one at 57.7 million square feet in 2019. This growth symbolizes that office space market across the country sees a new trend of rentals along with the growing off shoring by western corporations. The rises in flexible space transactions are add-on for the Indian economy," said Anurag Mathur, CEO, Savills India.

"We have seen the growth in office space leasing which is largely driven by IT, technology and co-working segments with 40 per cent. Clients usually opt for larger duration and a minimum of one to five seating capacity of office space. Currently, for the Madhapur branch 80% space is leased out and 10% space in every centre would be left-over and filled by the individuals who frequently migrating states and countries," said Samuel David, Area Director, Regus for Hyderabad, Kolkata, Pune.

"We provide fully furnished office space, meeting rooms for an hour or a day, Business lounges and collaboration areas & manned receptions with 24hr access, dedicated Parking along with free electricity free, Wi-Fi, UPI back-up and housekeeping services," said Vani Sri, Community Associate, Regus.

However, office lease market remained constant for higher-grade stock and large seating capacity. Approximately 10 out of 100 seats would be leftover every month in each company yet

there is no impact of economic slowdown on the absorption of office space in top cities reported in the country.

Rapid rise

The growth of co-working spaces is increasing rapidly across the country; overall, around 13 per cent of the total office transactions of co-working spaces was recorded in 2019 from 5 per cent in 2017. The office space market hit its own record of 47.3 million square feet in 2018, to set a new one at 57.7 million square feet in 2019.

Demand for office space was driven primarily by technology, financial service companies and flexible working spaces as well. Together they constituted approximately 70% of total leasing activity during 2019. The co-living space is also emerging in the form of student living, senior citizen living and similar options. Going by the acceptance of this model, demand for shared spaces is likely to gather further momentum going forward.